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Memphis Mobilizes To Deliver On Missing Middle Housing
Memphis Mobilizes To Deliver On Missing Middle Housing

Forbes

time21 hours ago

  • Business
  • Forbes

Memphis Mobilizes To Deliver On Missing Middle Housing

In the Malone Park Commons project, a variety of housing designs and options offer price points for ... More buyers at all income levels. While most people know Memphis for blues and barbecue, it also happens to be the third-busiest trucking corridor in the U.S. and it has one of the world's busiest cargo airports. Major corporations like FedEx, AutoZone and International Paper call Memphis home, even while its missing middle housing supply is lacking. With more than 108,490 workers in the transportation and materials moving sector, with an average annual salary of $43,000, and many more in the hospitality sector serving the entertainment and tourism industries, Memphis needs to stay on top of a variety of housing options at all price points. Seeing the market come up short, city leaders started modernizing permitting, aligning zoning and financing tools, and developing a bold housing plan to support community-driven development and deliver more workforce housing options. Filling Memphis's Missing Middle data shows the number of properties has gone down over the past decade but the price has ... More steadily increased. 'Though Memphis is affordable relative to the national market, limited home options and climbing prices have made the market increasingly challenging for buyers,' said Hannah Jones, senior economic research analyst with Low supply has elevated home prices, and in June 2025, the median listing price in Memphis was $347,200, roughly 51% higher than in 2019. On a price-per-square-foot basis, home prices climbed 67% between June 2019 and June 2025. The name Memphis means established and beautiful, which is exactly what John Zeanah, the planning director for the City of Memphis, aims to sustain with new programs and policies. Prior to adopting a new development plan in 2019, the city was growing by sprawl, extending city services and then annexing in new land. Memphis grew to 340 square miles, but without a population increase, which expanded the land area and put pressure on city services, but without growing taxes to support it. The city recognized a smarter approach to focus on bringing in more density in infill properties, which required some policy changes on zoning, and minimum lot requirements. The minimum size for urban lots was reduced to 3,000 square feet, the minimum lot size required to add an accessory dwelling unit was also reduced, and the minimum lot required to build a townhouse went down to 1,500 square feet. While the zoning changes had strength, city leaders had to look at other ways to manage the issue, pushing to evaluate building codes, fire codes, and storm requirements. Zeanah created a local amendment to move 3-to-6-unit buildings into the residential code to cut costs. He also removed sprinkler requirements to cut costs. His team took a rational approach to update requirements that were the same for a single-family property versus a quad plex that took up the same physical footprint but had much different needs. In his previous role as a developer, Zeanah frequently experienced costly permit delays, so he did an overall audit of the permitting process, looking at applicant requirements, process technologies, and the organizational structure. From there, his team was able to make improvements across all dimensions for a more seamless and responsive permit experience. After four years, there were significant results. 'We were able to get inspections to where about 75% could happen the next day after the request, and the permit response time to average 2 to 3 days,' he said. 'Now the overall time for a residential project is under a month, and the goal is to get down to 15 days. We have monthly performance reviews to look at all elements of the permitting process to understand where we are doing well and where we may be struggling and what resources might be needed if something is falling behind.' In 2024, the City convened a housing task force with stakeholders from county and city government, builders, developers, mortgage bankers, banks, and community organizations, to look at what specific policies and strategies to deliver more supply. The task force considered regulatory changes, plus land acquisition, funding and financing. The land acquisition task force looked at the high percentage of land in the core of the city close to downtown where there were now vacant lots. Many of the lots reverted to city ownership due to tax delinquency. The task force was able to pass an ordinance so those lots would be available to a builder for development at no cost for the land if they were able to complete the project in a year. A Missing Middle Blueprint The City of Memphis has created a future land use map to envision how the city will grow in ... More different areas with a focus on community. Andre Jones is the co-owner at Jones Urban Development and has been collaborating with the city to put the new policies into action. 'It's great to have a good relationship with a builder like Andre who is building communities that we aspire to in our comprehensive plan,' Zeadah said. 'He offers us real-life experience as he is going through the process and allows us more insight into what it takes to get different types of housing delivered. I do encourage planners all over the country to find a similar type of project and builder and build a relationship and work with them to help inform your own policy reforms.' Jones works with public officials to reduce barriers for more housing so that the savings can be passed on to the residents. For instance, he worked on removing the sprinkler requirements and has seen that turn into a $20,000 to $25,000 per building savings, not including the savings from ongoing maintenance of annual testing and leaks. He designs and builds to offer small affordable homes along with jobs to members of the local community. His communities have a variety of housing options that hit price points for buyers that make between 80 and 120 percent of average median income. in his communities, there are micro-homes, ADUs and townhomes on the same block, and all of them have amenities within walking distance. Getting the communities started has not been easy, especially from a financing perspective. 'What we did is put together a capital cocktail to get the project out of the ground,' Jones said. 'Community partners gave us low interest loans and grants for development.' Jones approached cost cutting from every angle. I met him as a Buildxact customer, which is another tool he is using to cut costs during his projects. 'We had to make sure all trades and suppliers were focused on residential structures and not kick into a commercial tier because these are homes and we were able to keep costs down that way,' he said. 'We also performed as the general contractor and didn't take a fee because we were developing it to hold, so we reduced that fee. We could eat it because we wanted the project to be a learning laboratory.' Plus, the projects were able to reduce ongoing costs for residents by meeting EcoBuild and energy efficiency programs with ductless mini splits. Jones said while these were added costs during construction, he wants to deliver high quality product into the market with hardwood floors, and trimmed out windows. 'This type of project will be replicable because of the advocacy,' Jones said. 'Moving forward, we have removed a lot of barriers, so we'll be able to build more of these types of homes. The goal is to use less and less subsidy moving forward.' Other industry leaders are finding ways to do the same in similar markets across the U.S. Future Of Missing Middle Housing What is happening in Memphis provides a bold, practical response to a national crisis of missing middle housing that has dropped in half since the 1980s. Right now, Zeadah is working on a five-year update to the comprehensive plan that would include new zoning for land use mix recommended in and around the anchor areas, with more flexibility to build multifamily in high transit areas and industrial areas. Plus, a new pre-approved residential plan program lets small multifamily projects skip months of delays – with some permits approved in just 24 hours. Robin Bartram Brown's MMY US brought modular construction best practices to a 180,000-square-foot facility in Louisville, Kentucky, where he is delivering missing middle housing options and changing codes and regulations to make it happen in a cost-effective way. Many other municipalities and developers are recognizing the efficiencies and potential cost savings of modular to deliver missing middle housing across the country.

Milwaukee's largest office to housing conversion to get city cash--in return for lower rents
Milwaukee's largest office to housing conversion to get city cash--in return for lower rents

Yahoo

time19-07-2025

  • Business
  • Yahoo

Milwaukee's largest office to housing conversion to get city cash--in return for lower rents

Milwaukee's largest conversion of an office building to housing would get city financing help − in return for setting aside some apartments at lower rents, under a plan that's won an initial city approval. The underused 100 East office tower's redevelopment would create 373 apartments by early 2028. That includes 75 "workforce housing" apartments with rents affordable to people earning no higher than the Milwaukee area's median income. Those monthly rents would initially be just over $1,900 for a studio and nearly $2,100 for a one-bedroom unit. Mayor Cavalier Johnson's Department of City Development is proposing tax incremental financing of $14.4 million for the $165 million project. That plan, endorsed by the Redevelopment Authority board on July 17, would use property tax revenue generated by the apartments to pay for part of the construction costs. The proposal is to undergo Common Council review in September, and renovations could begin in October. 100 East's conversion is being led by Klein Development Inc. and investor/developer John Vassallo. Their investment group bought the 35-story building, 100 E. Wisconsin Ave., in 2023 for $28.75 million. The financing plan's supporters include Alderman Robert Bauman, whose district includes downtown. 100 East would be the first workforce housing development to receive such financing under the city's new policy, Development Commissioner Lafayette Crump told authority board members. The Department of City Development defines workforce housing as apartments for people earning up to to 100% of the Milwaukee area median income. That amounts to $77,500 for an individual, or $110,700 for a family of four, according to updated federal guidelines. Workforce housing typically targets people who earn too much to qualify for tax credit-financed apartments with below-market rents, but still have trouble finding affordable market-rate units. Developers say inflated construction costs and higher loan interest rates have made it difficult to build such apartments without city help. Meanwhile, a new study from Moody's Analytics Inc. says the nationwide housing shortage is worse among rentals than home to purchase. That study recommends a focus on improving the housing supply "in modest- and middle-income communities." "With subsidies already providing some support for housing in low-income communities and the market in most places adequately serving upper-income communities, those in between are falling through the cracks," the study said. The 100 East development also would convert a nearly-vacant office building, with a $27 million assessed value, into one of downtown's largest apartment communities with an estimated $120 million value, Crump said. The city financing plan calls for annual payments to the developers from the project's property tax revenue. Those payments would stop after 16 years, Crump said, with the tax revenue then flowing to the city, Milwaukee Public Schools and other local governments. The financing package includes federal and state historic preservation tax credits, and a commercial loan with a guarantee from the U.S. Department of Housing and Urban Development − a program also used for The Couture high-rise. Tom Daykin can be emailed at tdaykin@ and followed on Instagram, Bluesky, X and article originally appeared on Milwaukee Journal Sentinel: 100 East conversion to housing to get city financing--for lower rents

Senator who championed Live Local Act says local governments must embrace it to work
Senator who championed Live Local Act says local governments must embrace it to work

Yahoo

time19-06-2025

  • Politics
  • Yahoo

Senator who championed Live Local Act says local governments must embrace it to work

Kathleen Passidomo championed the Live Local Act during her time as Florida Senate president. She saw it as a way to provide much-needed workforce housing across the state, including in her own backyard of Naples, where there has long been a critical shortage of it. "There had been study, after study, after study. Everybody gave it lip service. But nobody wanted to do anything about it," Passidomo said. There had been a strong "not-in-my-backyard" attitude, when it came to affordable and workforce housing. Since its adoption in 2023, Live Local has attacked the shortage on many fronts. "It's tax credits. It's things like density bonuses, making smaller units. And also, trying to cut through the red tape that often happens with government, to expedite some of these projects," Passidomo said. When reflecting on Live Local's success so far, she said: "It is working in many, many places. And it's all about leadership on a local level.' SPECIAL REPORT: Florida's Live Local Act wanted to spur affordable housing, but has it? The Republican senator has represented the 28th district, which includes Collier, Hendry and part of Lee County in Southwest Florida, since 2016. The region has some of the highest housing prices and rents in the state. Around the state, some cities, counties and towns have been more willing than others to accept or adopt the new Live Local rules, with some finding unexpected ways around them. "The local governments that recognized the need were welcoming the bill. And developers in those communities were being very successful," Passidomo said. In response to critics, who see the state law as an attack on home rule, she said: "The bill I don't believe was draconian or overreaching on the state's part." More: Q&A on Florida's affordable-housing Live Local Act: What is it and why is it controversial? She acknowledged some local governments, even in her own district, have found a way to "put the brakes on Live Local," by "opting out" of issuing property tax exemptions, based on certain criteria, which she isn't happy about. One of the proposed Live Local projects she's most proud of is in her own district. It would replace the defunct Sanibel Outlets, near the causeway to Sanibel Island, in Lee County, with a mixed-use development that would include workforce housing. "The people who work on Sanibel just have a quick shot over the bridge to get to work," Passidomo said. "That's an example of a good public-private type partnership." She sees the opportunity for more conversions like that one, with the help of Live Local, in Southwest Florida, and elsewhere in the state. "We have shopping centers that are virtually empty, so my thought is those are commercial properties that could be redeveloped into residential apartments," including workforce housing, Passidomo said. "So you could live where you work," she said. There are still misperceptions about the types of people who can benefit from Live Local, which include the "missing middle," who could be making $75,000 to $85,000 a year, Passidomo said. She pointed out that could include a starting attorney, or a myriad of city, county or state workers. "A lot of it is education and getting our local governments to understand and appreciate that the people who work for us, and with us, the bank tellers, the people who manage the grocery store, who work in retail, they have no place to live," Passidomo said. She continued: "And they have to drive hours and hours sometimes to get to work, which clogs our roads and creates all sorts of problems.' RELATED: The first 10 days of 2025 featured new projects, new deals, new data for Southwest Florida She hopes there will be more improvements to the Live Local Act, making it more effective and attractive to developers, through more amendments. "When I envisioned this bill, I naively thought that the local governments would embrace the concept and be thrilled about it," Passidomo said. "I never thought for a minute they would say, 'We don't want these people living here.' Because these people are the people that we work with every day." RELATED: DeSantis signs 'Live Local Act' in Naples Live Local will sunset in 2033, giving the Legislature a chance to automatically revisit it after 10 years, and to consider its renewal. While it may not be perfect, it is helping to move the needle, Passidomo said. "I have heard from a lot of people who do this as a business — that build workforce housing — that this has been transformative," Passidomo said. "So, all in all, I think it's successful and it will be for some time." Laura Layden is a senior reporter focusing on business and government for the Naples Daily News. This article originally appeared on Naples Daily News: Senator Kathleen Passidomo says Florida's Live Local Act has big upside

Evergreen Residential to Manage 21,000 Single-Family Rentals for VineBrook
Evergreen Residential to Manage 21,000 Single-Family Rentals for VineBrook

Bloomberg

time10-06-2025

  • Business
  • Bloomberg

Evergreen Residential to Manage 21,000 Single-Family Rentals for VineBrook

Evergreen Residential Holdings is taking over management of 21,000 US rental homes owned by VineBrook Homes Trust Inc., as single-family landlords find new ways to grow at a time when acquisitions are difficult. Evergreen, led by Chief Executive Officer Joseph Negri, will provide property and portfolio management to VineBrook, the companies said in a statement Tuesday. The partnership expands Evergreen's reach in the Midwest and increases its exposure to workforce housing.

Thrive Exchange development under construction to bring more affordable housing to South Chicago
Thrive Exchange development under construction to bring more affordable housing to South Chicago

CBS News

time08-05-2025

  • Business
  • CBS News

Thrive Exchange development under construction to bring more affordable housing to South Chicago

A $100 million project in the South Chicago neighborhood is celebrating its progress to bring more affordable housing and reinvestment opportunities to the South Side of Chicago. Thrive Exchange South, at 79th Street and Exchange Avenue, celebrated its "topping off" on Thursday, as crews raised the final beam of its construction. "As we raise the final beam of this transformative project, we are doing far more than just topping off a building, we are raising the bar for what's possible in South Shore and South Chicago," Ald. Greg Mitchell (7th) said. The six-story mixed-use building will include 43 units of affordable housing, 84 units of luxury workforce housing rental apartments, 24 for-sale condominiums, and 10,000 square feet of retail space on the ground floor. The project also will a healthcare center, with more than 50 jobs, and serving more than 15,000 patients a year. The $100 million project is being financed with up to $18.5 million in tax-exempt housing revenue bonds issued by the city, a $13.1 million TIF grant, and more than $6 million in other grants and loans from the city.

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